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Tuesday, January 28, 2014

Government unions sue, Rutherford responds

CHICAGO - A coalition of government unions filed a lawsuit on Tuesday seeking to overturn a new Illinois law aimed at reducing a $100 billion unfunded pension liability.

The lawsuit, filed by the We Are One Illinois coalition in Sangamon County Circuit Court in the state capital of Springfield, claims the law violates the Illinois Constitution, which stipulates that public worker pensions are contracts that the state cannot diminish or impair.

The law, which was enacted in December but does not take effect until June, reduces and suspends cost-of-living increases for pensions, raises retirement ages and limits the salaries on which pensions are based.

GOP gubernatorial candidate Dan Rutherford responded to the news, stating: “We anticipated this latest lawsuit by the We Are One Illinois Coalition regarding the new pension law. We will now wait and see how the Supreme Court rules. ”

Comments

CHICAGO - A coalition of government unions filed a lawsuit on Tuesday seeking to overturn a new Illinois law aimed at reducing a $100 billion unfunded pension liability.

The lawsuit, filed by the We Are One Illinois coalition in Sangamon County Circuit Court in the state capital of Springfield, claims the law violates the Illinois Constitution, which stipulates that public worker pensions are contracts that the state cannot diminish or impair.

The law, which was enacted in December but does not take effect until June, reduces and suspends cost-of-living increases for pensions, raises retirement ages and limits the salaries on which pensions are based.

GOP gubernatorial candidate Dan Rutherford responded to the news, stating: “We anticipated this latest lawsuit by the We Are One Illinois Coalition regarding the new pension law. We will now wait and see how the Supreme Court rules. ”